This month, the Market Reform Group published a new consolidated code of practice covering the implementation of contract certainty in the UK general insurance industry. This updates the previous code which has been in force since October 2005 and consolidates all previous market guidance on the issue.
There are few changes from the old code; in fact, it is intended to minimise change and additional work for brokers and insurers. It is designed to be compatible with the way they have implemented contract certainty to date and builds on the lessons learnt during the past two years.
Insurers and brokers need to read the new code and assess the impact and implications on their existing systems, if any (ensuring that all support staff involved in contract placement are also fully briefed). As before, they need to be prepared to demonstrate to the FSA that suitable contract certainty systems and controls are in place in their businesses.
For a copy of the new code, click here.
For the key elements of the new code, click here.
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